- Tactical U/G to BUY
- Core net profit up +123% YoY, +5% QoQ
- Optimistic on prospects
- Two deals pending completion
1Q22 core net profit of MYR72m was 37%/34% of our/consensus FY22E, with the beat coming from its cement, road maintenance and property ops, and strong assoc contribution. We make no change to our earnings forecasts pending completion of sale of its 25% stake in OMS. The stock now offers >10% upside (incl. div yld) to our unchanged MYR1.27 TP (based on 7x FY22E PER; -1SD of LT mean). Tactical U/G to BUY.